Bank of America swings to a profit

Bank of America returned to profitability in the first quarter as the bank was able to move beyond its legal troubles last year. However, the results came in short of some analysts’ estimates.

The consumer banking giant said Wednesday that it earned $2.98 billion after payments to preferred shareholders, compared with a loss of $514 million a year earlier. Revenue fell to $21.2 billion compared with $22.56 billion a year earlier.

On a per-share basis the bank earned 27 cents, compared with a loss of 5 cents a year earlier.

Financial analysts surveyed by FactSet were looking for the bank to earn 29 cents per share.

The Charlotte, N.C., bank’s legal expenses, which stemmed largely from the housing bubble and finan- cial crisis, appear to be largely behind it.

BofA’s legal costs for the quarter were $370 million, down slightly from the $393 million in legal expenses in the fourth quarter and a fraction of the $6 billion the bank paid out a year earlier.

The $6 billion in expenses last quarter was the major driver of the company’s quarterly loss last year. The bank has paid out more than $70 billion in legal settlements since 2008.

BofA’s revenue declined or was basically f lat in all four of BofA’s core businesses: consumer banking, wealth management, global banking and global markets.

Consumer banking, the largest business by revenue, reported f lat results in the quarter. Revenue fell to $7.45 billion from $7.65 billion a year earlier.

Bank of America shares dropped 18 cents, or 1%, to $15.64.